Nigeria's Tax Ombud warns revenue-only tax reforms will fail without taxpayer trust

Dr. John Nwabueze, Nigeria's first Tax Ombudsman, warned last weekend that pursuing tax revenue targets without building taxpayer trust risks undermining the entire reform system's sustainability. Speaking at FICAN's 36th anniversary conference in Lagos, he stressed that Nigeria's low tax-to-GDP ratio of 8.2% (vs ~16% in comparable African economies) stems more from trust deficit than enforcement gaps.

Nwabueze argued revenue growth and taxpayer confidence can reinforce each other when the system is fair, transparent and accountable. He cited over 20 genuine complaints received in the Tax Ombud's first three months—mostly about state-level informal levies despite formal tax payments—and noted 67 million BVN holders in the tax net show digital identity's potential. However, he cautioned that FinTech alone won't solve trust issues; digital reforms must simplify access, not create barriers.

With 16 of 36 states adopting harmonized tax frameworks since July 2026 and Finance Minister Oyedele having launched the Ombud's digital portal earlier this year, Nwabueze urged measuring reform success by whether citizens understand obligations, complaints are resolved fairly, and public confidence improves—not just revenue collected.

Will you judge tax reforms by money collected alone, or by whether you trust the system enough to see tangible benefits from your payments?

SOURCE: https://nairametrics.com/2026/09/20/tax-ombud-warns-against-revenue-first-approach-to-tax-reforms/